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Which Vanguard ETF Has the Highest Return? Top Performers for 2025

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ETFs often have relatively low expense ratios and offer instant diversification. Some of the best-performing Vanguard ETFs this month include VGT and MGK.

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Vanguard exchange-traded funds (ETFs) make investing in lots of assets all at once easier. And Vanguard has more than 80 ETFs to choose from.

Are you hunting for investment opportunities that can maximize your portfolio’s growth? As someone who’s spent countless hours researching investment options, I’ve found that Vanguard ETFs often provide an excellent balance of performance and cost-efficiency. But if you’re specifically looking for high returns, you’re probably wondering: which Vanguard ETF has the highest return?

According to the latest data from November 2025, the Vanguard Information Technology ETF (VGT) currently holds the crown with an impressive 34.78% annual return But there’s much more to consider beyond just this headline number

Top 10 Best-Performing Vanguard ETFs (November 2025)

Let’s dive right into the data. Here are the current top performers in Vanguard’s ETF lineup:

Ticker ETF Name Performance (Year) Expense Ratio
VGT Vanguard Information Technology ETF 34.78% 0.09%
MGK Vanguard Mega Cap Growth ETF 30.66% 0.07%
VOOG Vanguard S&P 500 Growth ETF 30.53% 0.07%
VUG Vanguard Growth ETF 29.33% 0.04%
VONG Vanguard Russell 1000 Growth ETF 28.65% 0.07%
VOX Vanguard Communication Services ETF 23.50% 0.09%
VPL Vanguard FTSE Pacific ETF 23.27% 0.07%
MGC Vanguard Mega Cap 300 Index ETF 20.58% 0.07%
VEA Vanguard FTSE Developed Markets ETF 20.54% 0.03%
VEU Vanguard FTSE All-World ex-US ETF 20.44% 0.04%

As you can see tech-focused and growth-oriented ETFs dominate the top of the list. This isn’t too surprising given the strong performance of tech stocks in recent years.

Understanding Vanguard’s Top Performer: VGT

The Vanguard Information Technology ETF (VGT) has been crushing it with a 34.78% annual return. This ETF tracks the performance of over 320 technology companies with significant holdings in industry giants like

  • Microsoft
  • Apple
  • Nvidia

This ETF has an “aggressive” risk profile, which means it can experience significant price swings. The expense ratio is a reasonable 0.09%, which was actually reduced from 0.10% earlier in 2025 as part of Vanguard’s largest expense ratio reduction in its history.

Growth-Oriented ETFs Dominate the List

Looking at the top performers, you’ll notice a clear trend: growth-oriented ETFs are delivering the highest returns. The next four highest performers after VGT are all growth funds:

  1. Vanguard Mega Cap Growth ETF (MGK) – 30.66%
  2. Vanguard S&P 500 Growth ETF (VOOG) – 30.53%
  3. Vanguard Growth ETF (VUG) – 29.33%
  4. Vanguard Russell 1000 Growth ETF (VONG) – 28.65%

This reflects the broader market trend where growth companies have significantly outperformed value stocks. However, it’s worth remembering that these performance patterns can shift over time.

Beyond Tech: Other High Performers

While tech dominates, there are other sectors and geographical regions delivering solid returns:

  • Vanguard Communication Services ETF (VOX) – 23.50%
  • Vanguard FTSE Pacific ETF (VPL) – 23.27%

This shows that diversification across different sectors and regions can still provide strong returns.

Should You Just Pick the Highest Return ETF?

It’s tempting to simply invest in whatever has the highest historical return, but that’s not always the smartest approach. Here are some important factors to consider:

1. Risk Profile Matters

Higher returns typically come with higher risk. VGT and other tech-heavy ETFs are classified as “aggressive” investments, meaning they can experience significant volatility. During market downturns, these funds may lose value more rapidly than more conservative options.

2. Past Performance Doesn’t Guarantee Future Results

Just because an ETF has performed well over the past year doesn’t mean it will continue to do so. Market conditions change, and different sectors go through cycles of outperformance and underperformance.

3. Consider Your Investment Timeframe

If you’re investing for the long term (10+ years), temporary volatility might be acceptable for potentially higher returns. If you need the money sooner, a more conservative approach might be appropriate.

4. Expense Ratios Impact Long-Term Returns

While all Vanguard ETFs have relatively low expense ratios, even small differences can compound over time. For example, VUG has a lower expense ratio (0.04%) than VGT (0.09%), which could be significant over decades of investing.

Popular Vanguard ETFs for Diversification

While our focus is on high-performing ETFs, it’s worth mentioning some popular Vanguard ETFs that offer broad diversification:

  • Vanguard Total Stock Market ETF (VTI) – Covers the entire U.S. stock market
  • Vanguard Total International Stock ETF (VXUS) – Provides exposure to global markets outside the U.S.
  • Vanguard Total Bond Market ETF (BND) – Offers broad exposure to the U.S. bond market

These funds might not always top the performance charts, but they provide excellent diversification at very low cost.

Recent Fee Reductions Make Vanguard Even More Attractive

In February 2025, Vanguard announced its largest expense ratio reduction in history, lowering fees on 87 funds, including 54 ETFs. Many of the top performers on our list benefited from these reductions:

  • VGT reduced from 0.10% to 0.09%
  • VOX reduced from 0.10% to 0.09%
  • VEA reduced from 0.06% to 0.03%
  • VEU reduced from 0.07% to 0.04%

These fee reductions might seem small, but they can significantly impact long-term returns, especially for larger portfolios.

How to Buy Vanguard ETFs

If you’re convinced that high-performing Vanguard ETFs deserve a place in your portfolio, here’s how to get started:

  1. Open a brokerage account – You can buy Vanguard ETFs through Vanguard itself or through almost any brokerage platform.
  2. Fund your account – Transfer money to your investment account.
  3. Place your order – Enter the ticker symbol (like VGT) and the number of shares you want to purchase.
  4. Consider dollar-cost averaging – Rather than investing all at once, consider spreading your investments over time.

You can buy ETFs for as little as the price of a single share, and some brokerages even allow fractional share purchases starting at $1.

My Personal Take on Vanguard’s High-Return ETFs

I’ve been investing in Vanguard ETFs for years, and while the high returns of funds like VGT are certainly attractive, I prefer a balanced approach. I hold some high-growth ETFs like VUG as part of my portfolio, but I also maintain significant positions in broader market funds like VTI to reduce my overall risk.

For most investors, I believe a mix of these funds is probably the wisest approach. The specific allocation depends on your risk tolerance, time horizon, and financial goals.

Final Thoughts: Beyond Just Returns

While VGT currently holds the title for highest return among Vanguard ETFs, focusing solely on past performance can be risky. The smartest investment strategy usually involves:

  • Diversifying across multiple ETFs
  • Considering your personal risk tolerance
  • Looking at expense ratios and other costs
  • Thinking long-term rather than chasing recent performance

That said, Vanguard’s top-performing ETFs clearly demonstrate the company’s strength in creating investment vehicles that can deliver impressive returns while maintaining relatively low costs.

Whether you choose to invest in VGT or one of the other high-performing options, Vanguard’s reputation for investor-friendly policies and low fees makes their ETFs worth serious consideration for your portfolio.

Have you invested in any of these top-performing Vanguard ETFs? What has your experience been? I’d love to hear your thoughts in the comments!

which vanguard etf has the highest return

What is a Vanguard ETF?

Vanguard ETFs are funds that group assets, such as stocks or bonds, into one investment. By investing in an ETF, investors can instantly diversify their portfolios.

The provider, in this case, Vanguard, owns the underlying assets and creates a fund that tracks their performance. Then, the provider sells shares in that fund to investors.

Shareholders own a portion of an ETF but dont own the actual assets in the fund. Then, buyers and sellers trade the ETF throughout the day on an exchange, much like a stock.

Most ETFs follow a similar passive strategy to index funds.

Vanguard Information Technology ETF (VGT)

This ETF follows the stock prices of more than 320 software, semiconductor and other IT-focused companies, and its risk profile is considered “aggressive.” More than a third of its holdings are in Microsoft, Apple and Nvidia stocks.

Which Vanguard ETFs Should I Invest In? Vanguard ETF Funds with HIGH Returns

FAQ

What Vanguard ETFs pay the highest dividends?

Vanguard ETFs
Average annual returns as of 10/31/2025 1
Sort table ascending by Fund name Sort table descending by Symbol Sort table descending by Inception
High Dividend Yield ETF VYM 8.88% (11/10/2006)
High-Yield Active ETFNEW FUND VGHY 0.15% (09/16/2025)
Industrials ETF VIS 10.70% (09/23/2004)

Should I buy VOO or Voog?

The main difference is that VOO (Vanguard S&P 500 ETF) tracks the entire S&P 500 for broad market exposure, while VOOG (Vanguard S&P 500 Growth ETF) focuses specifically on the “growth” companies within the index. This makes VOO more diversified and less volatile, with a lower expense ratio and higher dividend yield, while VOOG is more concentrated in sectors like technology, making it potentially more volatile but with higher growth potential.

Which ETF has the highest average return?

The highest average return ETFs depend on the timeframe, but top performers over the past 5-10 years have often been in the semiconductor sector, such as the VanEck Semiconductor ETF (SMH), with other high performers in natural gas, metals, and technology. For example, the Grayscale Bitcoin Trust ETF (GBTC) reported a high 5-year return of

56.74%56.74 %

56.74%

. For long-term performance (20 years), some funds like SDP have shown exceptionally high returns over that specific period.

Which ETF is best for high return?

Top 5 Equity ETFs Based on 5-Yr CAGR
Name Closing Price (₹) 5Y CAGR (%)
IDFC Nifty 50 ETF 254.07 15.46
Invesco India Nifty 50 ETF 2,637.50 15.19
Nippon India ETF Nifty 50 BeES 261.29 15.02
ICICI Prudential Nifty 50 ETF 259.87 15.02

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